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Telecommunication services means delivering, broadcasting, converting or receiving any of the services specified below by using any communications equipment or devices that transmit, broadcast, convert, or receive such service by electrical, magnetic, electromagnetic, electrochemical or electromechanical means and other means of communication, including wired and wireless communications; voice, music and other audio material; viewable images; signals used for transmission with the exception of public broadcasts; signals used to operate and control any machinery or equipment and services of an equivalent type which have a similar purpose and function.
Electronics services as per VAT in Dubai means services which are automatically delivered over the internet, or an electronic network, or an electronic marketplace, including supply of domain names, web-hosting and remote maintenance of programs and equipment, the supply and updating of software, the supply of images, text, and information provided electronically such as photos, screensavers, electronic books and other digitized documents and files; the supply of music, films and games on demand; the supply of online magazines; the supply of advertising space on a website and any rights associated with such advertising; the supply of political, cultural, artistic, sports, scientific, educational or entertainment broadcasts, including broadcasts of events; live streaming via the internet; the supply of distance learning and services of an equivalent type which have a similar purpose and function.
For telecommunications and electronic services specified above, the place of supply shall be in the State as per Dubai VAT Law, to the extent of the use and enjoyment of the supply in the State and outside the State, to the extent of the use and enjoyment of the supply outside the State. The actual use and enjoyment of all telecommunications and electronic services shall be where these services were used regardless of the place of contract or payment.
The export of telecommunications services shall be subject to the zero-rated as stated in Article (32) of Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax. The other telecommunication and electronic services will be charged at 5% VAT in Dubai.